# Statistics: Hypothesis Testing – #8

Question: A newspaper in a large Midwestern city reported that the National Association of Realtors said that the mean home price last year was $116,800. The city housing department feels that this figure is too low. They randomly selected 66 home sales and find a mean of$118,900. It is known that σ is equal to $3701. Use a 5% level of significance to test the$116,800 figure.